Filenews 4 May 2021 - by Theano Thiopoulou
Part of the recovery is expected to be supported by the National Recovery and Resilience Plan and the total estimated budget is €1.25 billion. of which €1.06 billion was will be made available in the form of a grant and €0.2 billion for the construction of a new infrastructure. in the form of a loan.
According to the Stability Programme 2021-2024 submitted to Brussels by the Finance Ministry, the strategic objective of the NRRP is "to strengthen the resilience of the country's economy and the potential for economic, social and environmentally sustainable long-term growth and prosperity".
Through the reforms and investments of the Plan, Cyprus is expected to become a country with high levels of resilience, productivity and competitiveness through a sustainable long-term development model, through a reformed and effective public administration, a more efficient judicial system and a modernised tax system. The Programme notes that the Department of Economic Research of the University has carried out a preliminary assessment (period 2022-2026) of the economic impact of the recovery plan. The overall impact assessment of the NRRP project shows that the measures increase value added (GDP) by over €550 million. which means GDP growth of €0.5 million. for every million euros invested. The increase of millions of euros from the measures suggests an increase of 2.8% of GDP by 2026. In terms of employment, all measures together create more than 15,000 jobs, or about 13 new jobs per million euros. The model does not distinguish between different types of work, e.g. skilled-unskilled. However, the distribution of jobs across all economic activities as simulated shows that investments related to the construction sector produce the highest number of jobs in both the sector and other sectors of the economy.
